North of England: Economic Support

Kemi Badenoch Excerpts

Wednesday 11th November 2020 Westminster Hall

[The Exchequer Secretary to the Treasury (Kemi Badenoch)]

It is a pleasure to serve under your chairmanship, Mr Efford, and I congratulate the hon. Member for Erith and Thamesmead (Abena Oppong-Asare) on her first appearance as shadow Exchequer Secretary. That is a very interesting role and I wish her all the best in it. I also congratulate the hon. Member for Barnsley Central (Dan Jarvis) on securing the debate and thank Members for their insightful contributions, many of which were delivered with great passion.

As was said by my right hon. Friend the Member for Rossendale and Darwen (Jake Berry), the north has been a hotbed of energy, ideas, innovation and creativity for centuries, and the region continues to power our economy. Global companies are taking advantage of the rich commercial opportunities in the north-west and the north-east is gaining a formidable reputation in areas such as advanced manufacturing, energy and the life sciences, while businesses in South Yorkshire, such as materials construction firm SIG and internet firm Plusnet, are generating jobs and growth. However, the Government are acutely aware that the past months have been incredibly difficult for people across the region, as they have been for the whole UK. As my hon. Friend the Member for Southport (Damien Moore) said, the pandemic is more than a health crisis; it is an economic crisis.

We are committed to protecting the livelihoods of people throughout the country. To that end, we have provided an unprecedented package of funding worth over £200 billion. I will briefly remind everyone of its main elements before addressing other points that Members have raised. The coronavirus job retention scheme has protected the livelihoods of 9.6 million people, many of them in the north. We have boosted welfare payments for the lowest earners and paid more than £1 billion to hundreds of thousands of people in the north through the self-employment income support scheme. That includes 63,000 grants issued in the north-east, 213,000 in the north-west and 163,000 in Yorkshire and the Humber—all to the self-employed. While thousands of northern firms have so far received £10.5 billion from the bounce back and coronavirus interruption loan schemes, we have provided in addition billions of pounds to local authorities throughout the country, including the north, to protect vital services during the pandemic.

These vast sums show that that the Government are determined to help the whole country, including the north, through this difficult period. We will be using the forthcoming spending review to make sure we put the right financial support in place to continue the fight against covid. We will also be using the spending review to drive forward the vital infrastructure projects that will aid our economic recovery from the crisis and level up the whole UK.

I am grateful to my hon. Friend the Member for Leigh (James Grundy) for giving me the opportunity to mention the towns fund. We are investing £3.6 billion in the towns fund to level up our regions and I am pleased that towns such as Tyldesley in his constituency are receiving this much-needed money.

The hon. Member for Batley and Spen (Tracy Brabin) asked about the local growth fund. She will be aware that this is a matter for the impending spending review, and it would not be appropriate for me to pre-empt the outcome of that process.

My hon. Friend the Member for Barrow and Furness (Simon Fell) spoke about investment, and I would like to give a brief recap of our infrastructure investment so far. Over the next five years, we are going to plough more than £600 billion into capital spending. That means new roads, new railways, hospitals and schools. We have brought forward £8.6 billion of this to support activity in the near term—plans that the International Monetary Fund said will address productivity, climate goals and regional inequality, which my hon. Friend is rightly concerned about.

My hon. Friend the Member for Penistone and Stocksbridge (Miriam Cates) referred to northern transport and asked what, specifically, the Government are doing about that. In the last Budget, we announced more than £27 billion—a record investment—for strategic roads over the next five years. That includes £18 million to upgrade the A61 Westwood roundabout at Tankersley in her constituency, dualling the A66 across the Pennines and the A1 from Morpeth to Ellingham in the north-east, and upgrading the M60 Simister Island in Greater Manchester. In the last Budget, we also provided a £4.2 billion investment to eight city regions across the north, including Sheffield city region, for local transport in the five-year funding settlement starting in 2022-23.

The Government remain committed to investing in improving rail connections across the north. The hon. Member for Halifax (Holly Lynch) will be pleased to know that we are developing an integrated rail plan so we can deliver High Speed 2 phase 2b and northern powerhouse rail more effectively alongside other transport schemes.

As well as such landmark projects, we need to improve infrastructure at a more local level, as the hon. Lady pointed out. To that end, this summer the Chancellor launched the £900 million Getting Building fund. The fund aims to boost jobs, upgrade infrastructure and support the recovery, and targets areas that are facing the biggest economic challenges because of the pandemic. I am pleased that combined authorities and local enterprise partnerships across the north of England have received more than £319 million.

As the hon. Member for Barnsley Central will know, Sheffield city region has already been awarded £33.6 million. That funding will create more than 1,000 jobs and unlock new housing, commercial and learning space. Projects include improvement work for schools and colleges, enterprise space for businesses and start-ups, new pedestrian and cycle bridges and junction improvement schemes, and new charge points for electric vehicles. That is far from an exhaustive list.

Our levelling-up agenda is not just about what or where we invest; it is about fundamentally shifting the way Government policy is formulated. The hon. Gentleman raised relocating civil servants to the north. As announced at Budget 2020, we are working with colleagues in the Department for Business, Energy and Industrial Strategy, the Department for International Trade and the Ministry of Housing, Communities and Local Government to establish a new economic decision-making campus in the north of England to be operational by the end of this Parliament, with at least 750 roles at the new site.

We continue to build on our successful English devolution agenda. We intend to bring forward the devolution and local recovery White Paper, laying out our plans for partnering with places across the UK to build a sustainable economic recovery.

[Rachael Maskell]

I mentioned the BioYorkshire project in my speech; it will be transformative for my constituency. It will create 4,000 jobs and upskill 25,000 people. Will the Minister look at bringing that money forward? We need investment now because of the economic crisis we face, rather than waiting two and a half years for devolution.

[Kemi Badenoch]

That is something we can certainly review. I will write to the hon. Lady to explain our position exactly.

Many core city regions in the north now have a metro Mayor and a devolution deal. We have recently agreed one such deal with West Yorkshire. It includes £1 billion of new investment and a directly elected metro Mayor, in place from May 2021. We fully implemented the Sheffield city region deal, which includes £900 million of new funding, along with substantial new devolved powers.

Many Members have expressed a desire for a northern recovery plan. This Government accelerated £8.6 billion for capital priorities to drive recovery across the country, and the upcoming spending review will continue to support the economic recovery of the north and the whole country. My hon. Friend the Member for Don Valley (Nick Fletcher) raised the Green Book. We are planning to conclude the review and publish the updated Green Book at the spending review.

Several Opposition Members have insinuated that the south was given preferential treatment over the north. That is simply not true, as anyone can see, given the unprecedented support provided. They also completely ignore other measures, such as new testing technology being piloted in Liverpool city region, which could be a game changer in tackling both the health and economic impacts of the pandemic in that area.

We realise that these are profoundly challenging times for many people and many communities in the north. The Chancellor himself is a northern MP, who is very much aware and impacted by the issues raised today. I say to hon. Members and their constituents that he is very much on their side. As I have outlined, this Government are unwaveringly focused on ensuring that people and businesses in the region and throughout the country are not only able to weather the storm of covid-19, but also benefit from an even brighter future.